AIM-listed automotive parts supplier Surface Transforms (SCE) suffered the loss of its biggest customer this week. The company announced the news yesterday, sending its shares down 95% to 0.095p, although they have rebounded slightly today. GM slams on the brakes Surface Transforms makes carbon-ceramic brake discs and is one of only two mainstream companies in this field alongside Italy’s Brembo. Its products are stronger and more durable than most of its competitors’ with improved heat conductivity. The firm revealed yesterday afternoon that General Motors (GM), its largest customer, was terminating its contract as of 31 March. GM represented 84% of…

Shares in housebuilder Vistry (VTY) plunged 20% after the firm lowered its margin guidance for FY26 due to price incentives. The firm also announced it was putting buybacks on hold and CEO Greg Fitzgerlald was stepping down. Focus on cash The group said 2026 had started well with an average of 1.42 sales per site per week against 0.59 a year ago. Open market sales are 40% ahead of last year, ‘primarily reflecting the success of the targeted pricing initiatives’. The focus for 2026 is to increase cash generation and reduce housing inventory by driving Open Market sales with incentives.…

Buybacks are one of the biggest developments in stock markets over the last decade, but do they actually add value? In this article we examine why companies are buying back shares and shrinking their capital rather than reinvesting for growth. Typically, when a company announces a buyback its shares rally as it is seen as a sign of management confidence. Generally, the bigger the buyback the bigger the response, even if the shares are overvalued and the timing is poor. A zero-sum game Buybacks mechanically boost a company’s EPS (earnings per share), because afterwards there are fewer shares in issue.…

Shares in testing, inspection and certification firm Intertek (ITRK) slumped 12% to £41.66 despite record FY25 results. The fall took the stock to the bottom of the FTSE 100 leader board and a nine-month low. Margin and earnings growth For the year to December, Intertek posted revenue of £3.4 billion, up 3.9% on an underlying basis. Growth was led by Consumer Products, Corporate Assurance and Industry and Infrastructure, offsetting weakness in Energy. Adjusted operating profit rose 9.3% to £620 million, representing a margin of 18.1% against 17.2% previously. The firm put the improvement down to product mix, pricing, operating leverage,…

Specialist contractor Keller (KLR) published a revised capital allocation plan alongside its FY25 result. As part of the plan, the firm raised its dividend sharply and announced a £100 million share buyback. Share price: £21.05 (+5.2%)PE: 11xMarket cap: £1.48bnYield: 3.3% Broad-based growth Geotechnical specialist Keller posted record results for the year to December, with total revenue up 3.4% to £3.1 billion. Growth came from all three geographic divisions, led by North America which represents around 60% of revenue. In the US, the firm won new contracts across several sectors including large infrastructure projects and data centres. This more than offset…

AIM-listed infection prevention business Tristel (TSTL) is an attractive growth company with strong margins and a strong balance sheet. Given its potential to ‘clean up’ in the US market, where revenue is growing exponentially, it is also undervalued. Tristel makes and distributes chlorine dioxide for the healthcare sector, where surfaces and medical devices need disinfecting to reduce risks to patients and staff. Volume sales are growing at double digits, while the firm is also able to increase prices at or above inflation. The growth opportunity in the US, where sales rose sixfold in 1H26, means analysts and investors are under-pricing…

Shares in Holiday Inn owner InterContinental Hotels Group (IHG) fell 5% after news the company is facing a CMA (Competition & Markets Authority) investigation. The announcement adds to pressure on the stock as international tourism is expected to take a dive on conflict in the Middle East. Share price: $131 (-5%)PE: 23.9xMarket cap: $20.8bnYield: 1.5% Information sharing IHG, along with Hilton Hotels (HLT) and Marriott International (MAR), is suspected of sharing sensitive information. Specifically, all three are thought to have shared hotel data from analytics tool STR, owned by CoStar (CSGP). The CMA has no issue with companies using data…

Warehouse and data centre investor Tritax Big Box REIT (BBOX) joined the big league with promotion to the FTSE 100. The move was part of the London Stock Exchange’s quarterly review of the large-cap and mid-cap indices. Winners and losers Tritax, whose shares are up 13% year-to-date, has a market cap of £4.6 billion. Its promotion marks a milestone as it means there are now seven investment trusts in the big-cap index. Joining Tritax in the FTSE 100 is online trading platform IG Group (IGG), with a market cap of £4.35 billion. Leaving the index are budget airline Easyjet (EZJ)…

After a tumultuous start to the year, we have put together a list of the most shorted UK and US stocks. As a reminder, we did the same exercise just for UK stocks at the end of 2025, so has anything changed? For the uninitiated, short selling involves borrowing stock and selling with the aim of buying back at a lower price. We have to stress this is only recommended for professional and institutional investors, NOT for retail investors. This is because the ‘risk-reward’ involves a great deal more risk than reward. The reward is limited since the share price…

Shares in aerospace equipment and engine maker Melrose (MRO) dropped 14% after the firm’s FY26 outlook undershot forecasts. The fall wiped out the stock’s previous gain of 9% year-to-date in one blow. Share price: 546p (-14.7%)PE: 22.5xMarket cap: £7bnYield: 1.1% Below forecasts The FTSE 100 company posted in-line FY25 results, with revenue of £3.59 billion and adjusted operating profit of £647 million. On a LFL basis, revenue was up 8% while profit was up 23% driven by increased Engine and Defence demand. ‘Melrose delivered another strong performance in 2025’, commented CEO Peter Dilnot. ‘We have positive momentum and are well-positioned…